Dubai Deal Scam: Bait & Switch Shell Game

Today the Intrepid Rethuglican Opposition along with the DINOcratic Leadership announced a defeat of Dear Leader and the Emirs over the port security issue, according to The New York Pravda:

WASHINGTON, March 9 — The state-owned Dubai company seeking to manage some terminal operations at six American ports dropped out of the deal on Thursday, bowing to an unrelenting bipartisan attack in Congress that swept aside President Bush's efforts.

The company, DP World, said that at the direction of Dubai's ruler it would "transfer" to a still-unnamed American company the leases to manage some of the busiest terminals in the United States, including some in New York, Newark, Baltimore and Miami.

Under questioning, the company declined to say whether it planned to sell the American operations or had some other transaction in mind...

Now, keep your eyes on the shell with the ball- "other" would be the operative word.

You see, the Emirs actually closed the deal today.

LONDON (MarketWatch) -- Dubai Ports World on Thursday closed its $6.8 billion takeover of Peninsular & Oriental Steam Navigation Co., turning it into one of the world's three largest ports operators and giving it control over some key U.S. ports.
Dubai Ports reiterated that it would hold its U.S. ports business separate from the rest of the company pending a review in the U.S.

"A review of our operations in the United States continues and we look forward to a timely resolution of any issues. We will continue to hold our U.S. operations separate while this process continues," said CEO Mohammad Sharaf.

The deal closing comes after a key House panel voted overwhelmingly Wednesday to block its plan to acquire the right to manage terminals at several major U.S. seaports, setting President Bush and defiant House Republicans on course for a major legislative collision.

The House Appropriations Committee voted 62 to 2 to amend an emergency-spending measure with language that would effectively bar Dubai Ports World from taking over terminal operations from P&O.

The vote marks an uprising among House Republicans, who have joined Democrats in rejecting Bush's pleas to let the deal proceed. The amendment was sponsored by Appropriations Committee Chairman Jerry Lewis, R-Calif., and was endorsed by House Speaker Dennis Hastert, R-Ill.

The full House could vote as early as next week on the urgently sought legislation, which would provide ongoing funding for military operations in Iraq and Afghanistan as well as further hurricane relief.

But Bush's threat to veto any legislation designed to block the deal still stands, White House spokesman Scott McClellan told reporters.

Bush and top officials insist that the deal was thoroughly vetted for security concerns, while Democratic and Republican lawmakers have charged that the interagency task force, the Committee on Foreign Investment in the United States, that approved the deal failed to adequately consider national-security risks.

Backers of the deal argue that the United Arab Emirates has been a valuable Middle Eastern ally in the war on terror, and warn that blocking the deal would set a double standard that discriminates against Arab-owned firms, while allowing other foreign-owned firms to operate port terminals.

Critics charge that UAE has a mixed record on terrorism, and also contend that state-owned firms should be held to a higher standard than other companies.

The administration agreed to take another look at the deal via a 45-day review by CFIUS, but Bush has made clear that he believes the transaction should eventually proceed.

So in a fine bit of Truthiness, Congress declared victory so they would be spared the struggle with Dear Leader, who's planning on vetoing aid to Katrina victims if he can't give his buddies the Emirs some of the action. Congressional Victory- with Dear Leader winning as usual.

Thanks to Buzzflash for the heads up.